A new report reveals the strategic use of private stablecoins to defend US economic hegemony, while experts warn of hidden risks mirroring the 2008 financial crisis. In the shadow of Bitcoin’s rise as “digital gold,” a quieter but more profound financial revolution is underway. Stablecoins—digital tokens pegged to traditional currencies like the US dollar—now account…
Tag: monetary policy
Bank of England’s Bailey says AI could be next industrial revolution, warns on growth
LONDON: Bank of England Governor Andrew Bailey said that Artificial Intelligence has the potential to be the next great technological leap that transforms the economy, but warned that Britain must work with it to reverse a prolonged slowdown in productivity growth. In a speech drawing on lessons from economic history, Bailey said the nature of…
Wall Street surges as Powell signals potential rate cut
Dow Jones soars 918 points to record high as investors cheer Powell’s dovish pivot NEW YORK: The Dow Jones Industrial Average surged to a record high Friday after Federal Reserve Chair Jerome Powell hinted the central bank may begin easing monetary policy as early as next month. The Dow jumped 918 points, or 2%, to…
Stocks retreat after Fed leaves rates unchanged; Tariff impact still unclear
Dow Jones slides 300 points as Powell tempers rate cut expectations amid tariff concerns Stocks fell Wednesday as Federal Reserve Chair Jerome Powell dashed hopes for near-term interest rate cuts, indicating the central bank is still evaluating the inflationary impact of higher tariffs imposed by President Donald Trump. The S&P 500 lost 0.3% after gaining…
RBA holds rates at 3.85%, signals cautious approach amid inflation uncertainty
SYDNEY: Australia’s central bank kept its benchmark interest rate steady at 3.85% on Tuesday, resisting pressure for an immediate cut as policymakers seek more evidence that inflation is sustainably easing toward target. The Reserve Bank of Australia’s decision surprised economists, most of whom had forecast a 25-basis-point reduction following softer-than-expected inflation data in May. The RBA…
How interest rate hikes affect corporate earnings: A deep dive into the Fed’s ripple effect
Why corporate America defied the Fed’s rate hikes; And what comes next? When the Federal Reserve adjusts interest rates, the ripple effects extend far beyond mortgage payments and savings accounts—corporate earnings feel the impact, too. With inflation cooling but rates remaining elevated, businesses face a complex financial landscape. Some sectors thrive, while others struggle under…
Fed holds rates steady, signals fewer cuts ahead amid inflation concerns
The Federal Reserve (Fed) held interest rates steady Wednesday, maintaining its target range of 4.25%-4.5% amid concerns over inflation and slowing economic growth. Despite expectations for two rate cuts later in 2025, officials scaled back their projections for reductions in 2026 and 2027, citing uncertainty in their economic outlook. The central bank’s “dot plot” indicated…
Asian Development Bank forecasts moderate growth for Asia Pacific amid trade war
MANILA: The Asian Development Bank (ADB) projected growth in Asia Pacific to moderate to 4.9% in 2025 and 4.7% in 2026, citing rising trade barriers and a slowdown in China’s property sector. The forecasts, finalized before new U.S. tariffs were announced on April 2, highlight the region’s resilience despite global headwinds. In its Asian Development…
Headline inflation expected at 5.87% YoY in Jan’21
We expect Jan’21 inflation to settle at 5.87% YoY compared to 14.56% in Jan’20 and 7.97% in Dec’20, respectively. This will take the 7MFY21 average inflation to 8.2% compared to 11.6% in 7MFY20. The YoY uptick in CPI will likely be led by Food (7.1 % YoY), Clothing & Footwear (9% YoY), Alcoholic Beverages &…